Thanks to policy credits, Y Hơ Lê, a resident of Sa Loong Commune in the Central Highlands province of Kon Tum’s Ngọc Hồi District, has earned an income of over VNĐ100 million per year. VNA/VNS Photo

KON TUM – Households of ethnic minorities in the Central Highlands province of Kon Tum’s Ngọc Hồi District have seen progress in their material and spiritual well-being thanks to preferential loans through social policies.

Sa Loong Commune in Ngọc Hồi District is one of the localities with a high percentage of ethnic minorities in Kon Tum province at 85 per cent.

The livelihood of the people here mainly depends on agriculture with crops such as coffee and rubber. In the past, due to outdated farming techniques, the economy of the people here faced many difficulties.

Poor households are eligible for financial and housing support as well as low-interest loans to invest in their livelihoods, among other forms of support provided by the Government to lift them out of poverty.

In 2010, the poverty rate of the commune was still more than 34 per cent. However, since having access to social policy loans, many households in Sa Loong Commune have escaped poverty sustainably.

Y Hơ Lê, a resident of Sa Loong Commune, is one of the beneficiaries.

With a loan of VNĐ50 million (US$2,100), she invested in growing five hectares of coffee and rubber, which have brought a stable income.

“Our family is now out of poverty with financial stability, with an annual income of about VNĐ100 million ($4,200).”

This income is quite high compared to the average income in Ngọc Hồi District.

"The social policy loan has helped my family escape poverty sustainably. It is expected that by the end of 2023, I will be able to pay off all the money borrowed from the bank," Y Hơ Lê said. “We have a savings account, and bought a motorbike. Next year, we will build a new house.”

Thanks to this source of capital, numerous households have been able to expand their agricultural production and improve their income, which contribute to poverty reduction in the localities, she said.

According to Nguyễn Thành Lương, deputy chairman of Sa Loong Commune People’s Committee, with the joint efforts and determination of all levels of authorities, many ethnic minority members have improved their financial conditions and are on the way to sustainable poverty reduction, with some households even getting rich.

Lương recommended that social credit policies for ethnic minorities and people in mountainous areas need continuous innovation and upscaling in terms of loan limits and borrower eligibility, especially in business-production projects, which will contribute to sustainable livelihoods for the people.

The commune poverty rate has fallen from 34.1 per cent in 2010 to 4.88 per cent now.

Kon Tum is expected to achieve its goal of sustainable poverty reduction from now to 2025 with an annual reduction rate of 3-4 per cent. – VNS